Korea Development Bank (KDB) has vowed to carry out intense reform of Hyundai Merchant Marine (HMM) to normalize the ailing shipping firm’s management. KDB is HMM’s largest shareholder with a 13.13 percent stake.
The decision came after a due diligence submitted by Samil PricewaterhouseCoopers, which claimed HMM could be “capital impaired next year and the bailout requires at least 6 trillion won ($5.32 billion) by 2022.”
The due diligence also includes HMM’s debt, currently estimated at 2.54 trillion won, which is likely to reach 3.32 trillion next year and eventually top 6.66 trillion won by 2022. Taking into account the shipping firm’s total assets of 3.02 trillion won, HMM will face capital impairment next year.
“KDB has signed an MOU with HMM to improve the firm’s competitiveness. The bank will also dispatch a specialist group to help strengthen its governance,” KDB said in a press release.
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